Opplæringskontoret for Indre Hordaland

Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. Established in 1913, its primary responsibilities include conducting monetary policy, regulating banks, maintaining financial stability, and providing banking services to the government and other financial institutions. The Federal Reserve aims to promote maximum employment, stable prices, and moderate long-term interest rates. It operates through a network of twelve regional Federal Reserve Banks and is governed by a Board of Governors appointed by the President of the United States. The Fed uses various tools, such as open market operations, the discount rate, and reserve requirements, to influence money supply and economic conditions. Its decisions can significantly impact the overall economy, affecting inflation, employment, and the stability of the financial system.